Security firm Baltimore Technologies is slashing 18 per cent of its workforce - news which sent the company's share price plummeting as the new economy continues its slump.
After the announcement that around 250 people faced the axe, the company's shares dived by around 15 per cent before finally levelling out at around 77p.
Baltimore has already made two profit warnings this year and has seen pre-tax losses grow considerably to £72.8m after quarter-on-quarter sales fell by 17 per cent. Chief executive Fran Rooney said: "The challenge for us is to manage our organisation with the resources we have available."
He added that although the first quarter of 2001 had been challenging, Baltimore has announced a series of measures which should accelerate the deployment of its solutions and consolidate its business to build a stronger company.
Rooney said that the job cuts would be across the board and were necessary for the company to target savings of £30m to £35m.
Baltimore has around £84m in the bank but first-quarter revenue forecasts were knocked down from £25m to £23.7m, a figure which fell well below analyst expectations of £30m.
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